Correlation Between CITIC Guoan and Sichuan Jinshi
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By analyzing existing cross correlation between CITIC Guoan Information and Sichuan Jinshi Technology, you can compare the effects of market volatilities on CITIC Guoan and Sichuan Jinshi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CITIC Guoan with a short position of Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Sichuan Jinshi.
Diversification Opportunities for CITIC Guoan and Sichuan Jinshi
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Sichuan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology and CITIC Guoan is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CITIC Guoan Information are associated (or correlated) with Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between CITIC Guoan and Sichuan Jinshi
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 0.93 times more return on investment than Sichuan Jinshi. However, CITIC Guoan Information is 1.08 times less risky than Sichuan Jinshi. It trades about 0.02 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.01 per unit of risk. If you would invest 263.00 in CITIC Guoan Information on October 18, 2024 and sell it today you would earn a total of 34.00 from holding CITIC Guoan Information or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| CITIC Guoan Information |
| Sichuan Jinshi Technology |
CITIC Guoan and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Sichuan Jinshi
The main advantage of trading using opposite CITIC Guoan and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Sichuan Jinshi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| CITIC Guoan vs. Marssenger Kitchenware Co | CITIC Guoan vs. Cangzhou Mingzhu Plastic | CITIC Guoan vs. BTG Hotels Group | CITIC Guoan vs. Ningbo Tip Rubber |
| Sichuan Jinshi vs. Shuhua Sports Co | Sichuan Jinshi vs. ButOne Information Corp | Sichuan Jinshi vs. CITIC Guoan Information | Sichuan Jinshi vs. Zhongfu Information |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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